[UI] Keyboard navigation bug in dropdown menu

[jenny-s51]

Describe the bug
A clear and concise description of what the bug is.
When using arrow keys to navigate this dropdown menu, the first item stays grey always. See image below.

To Reproduce
Steps to reproduce the behavior:

1. Go to Model Registry list view and click on split dropdown on "Register model" button
2. Click "Register new version"
3. Navigate to registered models dropdown and use keyboard to toggle

Expected behavior
A clear and concise description of what you expected to happen.
First item should not stay grey.

[jenny-s51]

/assign